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29 Jul 2015
GBP/USD testing lows near 1.5600
FXStreet (Mumbai) - The GBP/USD pair extends its choppy trend and remains modestly in the red ahead of Europe open, mainly driven by a rising US dollar against its major competitors ahead of the Fed decision due later in the NY session.
GBP/USD drops from 1.5620
The GBP/USD pair trades modestly flat at 1.5605, retracing from session highs at 1.5620 levels. The cable gave back gains and edged slightly lower in the European session as the buck regained lost ground across the board, after a minor correction seen in Asia.
Markets anticipate a hawkish tone from the FOMC statement due to be published later tonight which may further boost the USD rally. The US dollar index, a virtual gauge of the greenback’s relative strength reversed previous losses and edged 0.12% higher to 96.88.
More so, traders are unwinding their GBP long positions ahead of FOMC after the pound extended three back-to-back days of gains.
Looking ahead, Federal Open Market Committee (FOMC) meeting is taking some attention now, although the Federal Reserve is not expected to make any changes in its monetary policy, but should comment on the possibilities of a September rate hike.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5620 (Today’s High) above which gains could be extended to 1.5646 (July 22 High) levels. On the flip side, support is seen at 1.5544 (July 22 Low) below which it could extend losses to 1.5400 levels.
GBP/USD drops from 1.5620
The GBP/USD pair trades modestly flat at 1.5605, retracing from session highs at 1.5620 levels. The cable gave back gains and edged slightly lower in the European session as the buck regained lost ground across the board, after a minor correction seen in Asia.
Markets anticipate a hawkish tone from the FOMC statement due to be published later tonight which may further boost the USD rally. The US dollar index, a virtual gauge of the greenback’s relative strength reversed previous losses and edged 0.12% higher to 96.88.
More so, traders are unwinding their GBP long positions ahead of FOMC after the pound extended three back-to-back days of gains.
Looking ahead, Federal Open Market Committee (FOMC) meeting is taking some attention now, although the Federal Reserve is not expected to make any changes in its monetary policy, but should comment on the possibilities of a September rate hike.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5620 (Today’s High) above which gains could be extended to 1.5646 (July 22 High) levels. On the flip side, support is seen at 1.5544 (July 22 Low) below which it could extend losses to 1.5400 levels.